A worker should work on reaching his 401k contribution limit even though it practically changes every year. After all, 401k is the most foolproof way to save for the future. If one takes this retirement savings program seriously, he doesn’t have to worry about money after he retires.

This retirement savings program is a traditional one. An employer automatically deducts a certain amount from the paycheck of an employee and deposits it in his retirement funds. This goes directly to his retirement savings. Although there are many other retirement options, many workers opt for this retirement savings fund.

It is true that an employee’s contribution to this savings program is restricted because there is a 401k contribution limit. However, some people, especially those who earn more, don’t just become content with this retirement savings program as they place their money in their personal savings, too. Hence, when they retire, they can count on both their 401k and personal savings accounts. On the other hand, some workers opt for a self-directed IRA plan. This gives them the opportunity to invest in other things. More often than not, they choose to invest their money in stocks.

But is it really important for workers to save for their retirement even if it can mean going with a reduced paycheck every month? Yes, it is, especially if he thinks long term. A person is sure to work hard on reaching his 401k contribution limit if he becomes aware of what has happened to those people who have retired without or little funds.

Retirees with little money or funds can hardly survive because they didn’t take contributing to their retirement funds seriously when they still had the chance. Often, they have to rely on their kids for financial support. It is a struggle for them to provide even for their most basic needs. There is no denying that growing old, weak, and without money is really misearable.

Because they know that these experiences of other retirees can happen to them, too, many workers work hard and save for their retirement. For some workers, this may mean having to tighten their belts in order to reach their 401k contribution limit. However, thinking of what their sacrifice can do for their future has made this a bitter but easy pill to swallow.